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Anger as state-supported British Energy reveals £4bn loss

BRITISH ENERGY, the nuclear generator being kept from bankruptcy by the government, will this week announce record losses in excess of £4 billion.

These will be made up mainly of a £3.8 billion writedown of its electricity-generation assets, listed on the balance sheet with a value of £4.44 billion. The company has been hit hard by a dramatic fall in power prices, which has rendered its eight power stations nearly worthless.

Disclosure of the huge loss comes a week after Network Rail, the successor body to Railtrack and also controlled by the government, announced losses of £290m last year. The company blamed the cost of maintenance and repairs on an increase in costs of a third to £3.7 billion over the past year.

Despite the embarrassment, the government is understood to be committed to keeping the BE afloat. It provides 20% of Britain’s electricity, and its bankruptcy would cause turmoil